•PLS-SEM is a versatile method for estimating structural equation models.•We provide a non-technical step-by-step approach to concepts and issues of PLS-SEM.•We identify how and why PLS-SEM may be ...useful for family business researchers.•We provide a real-world family business PLS-SEM research example.•The extensive bibliography is a support to current and future PLS-SEM users.
Structural equation modeling (SEM) has become a mainstream method in many fields of business research, but its use in family business research remains in its infancy. This lag in SEM's application holds especially true for partial least squares SEM (PLS-SEM), an alternative to covariance-based SEM, which provides researchers with more flexibility in terms of data requirements, model complexity and relationship specification. This article draws attention to PLS-SEM as an opportunity to advance the development and testing of theory in family business research by providing a non-technical introduction into the basic concepts and issues of PLS-SEM, bearing the needs of potential users in mind. To this end, a systematic procedure for PLS-SEM results evaluation is presented and applied to an annotated example. The article also illustrates the analysis of mediating effects, which researchers are increasingly testing in their models.
Despite having characteristics conducive to innovation, family firms are often thought to be less innovative than their nonfamily counterparts. A potential contributor to this innovation paradox is ...familiness, or the bundle of resources that derive from involvement of the family in the business. We explore this relationship by investigating the mediating role played by the firm's entrepreneurial orientation (EO). Using a global sample of family firms, we find support for the mediated model, with the underlying dimensions of familiness differing in their influence on EO, which in turn affects a number of innovation outcomes. The findings are used to clarify the innovation paradox.
In their groundbreaking study of family business leader succession, Sonnenfeld and Spence (1989) found that the heroic self-concept, consisting of heroic stature and heroic mission, prevents the ...incumbent patriarch from letting go (retiring, stepping aside). For all the impact that their study has had on succession scholarship, we assert that they failed to consider female family business leaders. We re-examine their findings, through a generalizability replication with extensions grounded in recent scholarship. We thereby extend the original study and broaden its reach, stressing the need for exploration of letting go by female leaders in family businesses. When introducing gender in the heroic self-concept/letting go relationship, we find that heroic mission and heroic stature are each significant to males, but not females, suggesting a gendered difference in letting go. Our analysis confirms the original study’s findings for male leaders and we expose limits to the generalizability of their work to female leaders.
•The article is a generalizability replication with substantive moderator (gender) which examines Sonnenfeld & Spence’s long-standing and undertested work about the parting patriarch and letting go, to female incumbent leaders of family business•Heroic self-concept/reluctance to let go relationship is different by gender of the leader•For males, gender positively moderates the relationship between both heroic mission and reluctance to let go•Heroic mission nor heroic stature are significant to the entrenchment of female family business leaders•We extend the original study and yet broaden its reach by stressing the need for exploration of letting go by female leaders in family businesses•Gerontocracy or rule by elders may be the domain of male family business leaders•Future directions include examination of a theory of female leadership and letting go
We posit that family firms often face a dilemma in their strategic decision making: whether to maintain current socioemotional wealth or pursue prospective financial wealth. Applying such a mixed ...gamble perspective to acquisitions, family owners assess potential acquisitions with regard to their impact on both wealth dimensions. In line with this reasoning, our results show that family control implies a general reluctance to acquire and, when an acquisition happens, a preference for related targets. Because financial and socioemotional viewpoints lead to largely incompatible predictions about the occurrence and relatedness of acquisitions, family firm owners use their firm’s vulnerability as a signal. Increased vulnerability leads to a heightened propensity to prioritize financial over socioemotional wealth problem framing, which is reflected in the acquisition of unrelated targets. Empirical results are supportive of these predictions.
Researchers recently pointed to family science as one avenue for better understanding business families. We submit, however, that leveraging family science will require building on what researchers ...have already learned, often without the benefit of family science theories. Thus, we review progress from studies that investigate links between business family attributes and family firms and integrate our review with descriptions of family science theories that pertain to each attribute. By pairing what is known about different business family attributes with the appropriate family science theories, our hope is to accelerate efforts to understand the myriad ways business families shape family businesses.
Entrepreneurship declines precipitously across generations in family firms, except in families that convey an entrepreneurial legacy to successors. However, because an entrepreneurial legacy is ...imprinted on all children, its impact should extend beyond successors. Inductive analysis of data from 26 nonsuccessor adult children from 13 multigenerational German wineries reveals that whether and where-at the firm, within the family's portfolio of firms, or elsewhere-such adult children pursue entrepreneurship depends, in addition to having an entrepreneurial legacy, on family cohesiveness and flexibility. Implications are that whereas entrepreneurial legacies affect all children, whether and where children leverage their legacy depends on the business family behind the family firm.
Governance Mechanisms and Family Firms Chrisman, James J.; Chua, Jess H.; Le Breton-Miller, Isabelle ...
Entrepreneurship theory and practice,
03/2018, Letnik:
42, Številka:
2
Journal Article
Recenzirano
Odprti dostop
Governance, along with goals and resources, is a key determinant of the distinctiveness and heterogeneity of family firms. Our introduction discusses formal and informal governance mechanisms that ...emanate from inside and outside the firm and then reviews, integrates, and extends the contributions to this topic of the six articles and four commentaries in this special issue. Building and reflecting on these contributions, we suggest that although formal governance mechanisms inside family firms have unique characteristics, informal governance mechanisms may be equally important, and external mechanisms, both formal and informal, can also profoundly influence the behavior and performance of family firms.
Family firm heterogeneity results in reduced predictability of firm behavior as well as inconsistent results regarding research on family firm behavior. We argue that family firm heterogeneity is ...based, among other factors, on values heterogeneity. In order to lay the ground for future research, we develop a taxonomy of family firms based on values. Using values theory, we identify six value categories, resulting in five family firm types with five distinct value profiles. Second, we posit family firm values profiles are distinct to the group of family firms as nonfamily firms do not display similar value profiles.
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